Price-to-Win is both a strategy for a business and the ultimate product that results from that strategy. Price-to-Win is a process where you analyse and evaluate your company’s competitors and their data to predict how they will bid.
You will use this predicted bid and information about the customer’s budget to make a bid of your own. Your bid is a dynamic trade-off which takes both the customer’s and competitors into consideration.
Understanding the characteristics of a successful price-to-win strategy
Successful price-to-win activities and strategies all share common features. The main characteristics include commitment and investment in price-to-win strategies, data integrity, management champions, starting early, and consistently improving current strategies.
Starting your price-to-win strategy as soon as data becomes available
The earlier you begin, the more time you have to arrive at the best solution for your company. It is a continuous process that requires reacting to new information as soon as it becomes available.
Employ analysis tools and information systems
Your company should understand and use tools like Customer Relationship Management (CRM), an internal knowledge base, Spreadsheets, INPUT, E-The pipeline, and Fedspending.org.
Gather as much customer data as possible
Those with the most information always have the most power. The more customer intelligence you have, the better your price-to-win strategy will be. This knowledge can be inputting to your CRM system. You should focus on their available funding for the project.
Know your own business
You need to be aware of your own profile to properly inform your price-to-win strategy. Be aware of things like your historical cost data, your competitive position, your differentiators, your internal risk, etc.
Keep customer’s benefits at the forefront of your strategy
You price ultimately depends on how much the customer is going to benefit from your product. You can illustrate this using graphs to see how to maximize your value but minimize your cost.